Inflation calculator - Euro (Italy)

This tool is useful to calculate the time value of money based on historical inflation and CPI values. To start, select an amount and two years, or browse the default calculation results.

€100 in 1956

€2,885.29 in 2020

The inflation rate in Italy between 1956 and 2020 was 2,785.29%, which translates into a total increase of €2,785.29. This means that 100 euro in 1956 are equivalent to 2,885.29 euro in 2020. In other words, the purchasing power of €100 in 1956 equals €2,885.29 in 2020. The average annual inflation rate between these periods was 5.39%.

Inflation timeline in Italy (1956 - 2020)

The following chart depicts the equivalence of euro (Italy) throughout the years due to compound inflation and CPI changes. All values are equivalent in terms of purchasing power, which means that for each year the same goods or services could be bought with the indicated amount of money.

All calculations are performed in the local currency (EUR) and using 6 decimal digits. Results show only up to 2 decimal digits to favour readability.

The following table contains relevant indicators:

Indicator

Value

Total Inflation (1956-2020)

2,785.29%

Annual inflation avg. (1956-2020)

5.39%

CPI 1956

3.56

CPI 2020

102.8

€1 in 1956

€28.85 in 2020

How to calculate the time value of money with inflation data?

There are several ways to calculate the time value of money. Depending on the data available, results can be obtained by using the compound interest formula or the Consumer Price Index (CPI) formula.

Using the compound interest formula

Given that money changes with time as a result of an inflation rate that acts as a compound interest, the following formula can be used: FV = PV (1 + i)n, where:

FV: Future Value

PV: Present Value

i: Interest rate (inflation)

n: Number of times the interest is compounded (i.e. # of years)

In this case, the future value represents the final amount obtained after applying the inflation rate to our initial value. In other words, the future value is the amount in 2020 that equals €100 in 1956 in terms of purchasing power. There are 64 years between 1956 and 2020 and the average inflation rate was 5.3939%. Therefore, we can resolve the formula like this: